§ 151.9. Calculation of bonding obligation.
(a) For the purpose of sections 7(c) and 8 of the Milk Producers’ Security Act (act) (31 P. S. § § 626.7(c) and 626.8), the Board will use the following method to ascertain the highest aggregate amount owed by the dealer to producers for a 40-day period during the preceding 12 months:
(1) Review the amount owed by the milk dealer to all its producers for each month in the preceding calendar year.
(2) Identify the 2 consecutive months in which the sum of the amounts owed was the highest.
(3) Divide the sum of the amounts owed from paragraph (2) by the total number of days in the 2 consecutive months.
(4) Multiply the quotient from paragraph (3) by 40.
(b) As used in sections 7(c) and 8 of the act and in subsection (a), ‘‘amount owed’’ has the following meanings:
(1) For a purchase subject to minimum pricing fixed by the Board, ‘‘amount owed’’ means the amount the milk dealer was required to pay the producer under the applicable Board order, even though the actual amount paid exceeded the Board-established minimum price.
(2) For a purchase not subject to minimum pricing fixed by the Board, ‘‘amount owed’’ means the actual amount the milk dealer lawfully paid the producer.
Authority The provisions of this § 151.9 amended under section 14 of the Milk Producers’ Security Act (31 P. S. § 626.14).
Source The provisions of this § 151.9 adopted March 27, 1981, effective March 28, 1981, 11 Pa.B. 1088; amended August 9, 2002, effective August 10, 2002, 32 Pa.B. 3893. Immediately preceding text appears at serial pages (276995) to (276996).
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